Microsoft's Handling Of BitLocker Keys Raises New Privacy Concerns

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(RTTNews) - Microsoft (MSFT) said on Friday that the company has come under renewed scrutiny after reports said it provided the FBI with BitLocker recovery keys to unlock encrypted laptops tied to a federal investigation.

According to the report, recovery keys were handed over for three laptops seized in a fraud case linked to pandemic unemployment benefits in Guam. The machines were protected using BitLocker, the full-disk encryption system that is enabled by default on many Windows devices and is meant to keep data inaccessible without the owner's credentials.

While BitLocker is designed to secure data when a device is powered off, recovery keys are typically backed up to Microsoft's cloud unless users opt out. This setup allows Microsoft to retrieve those keys when served with a valid legal request, enabling law enforcement to decrypt the drives. Court records indicate that federal authorities obtained a warrant months after seizing the devices and then sought the keys from Microsoft.

Microsoft has said it receives a small number of such requests each year and complies when legally required. However, the practice has reignited debate over whether default cloud storage of recovery keys undermines the promise of strong encryption.

Security experts have also warned of broader risks. Critics point out that storing large numbers of recovery keys in a centralized cloud system creates an attractive target for hackers, especially given past breaches affecting major technology platforms. While stolen keys alone would not be enough to access data without the physical devices, the scenario highlights what some see as unnecessary exposure.

Researchers argue that concerns around key storage have been known for years and question why stronger safeguards or alternative designs have not been adopted more widely. The issue adds to ongoing discussions about user privacy, corporate responsibility, and the balance between security and lawful access in modern operating systems.

Friday, MSFT closed at $465.95, up 3.35%, and is trading 0.06% lower at $465.69 in after hours trading on the NasdaqGS.